(PHILADELPHIA) Thursday, September 22, 2022 – Today, Councilmember Katherine Gilmore Richardson (At-Large) introduced legislation to amend the City of Philadelphia’s Budget Stabilization Reserve (BSR), also known as the “Rainy Day Fund.” This legislation would amend the Philadelphia Home Rule Charter to require an annual appropriation of three-quarters of one percent (0.75%) of General Fund Revenue when the projected General Fund balance exceeds $100 million. It also updates the target balance of the BSR from a maximum of 5% of General Fund Revenues to a minimum of 7% to align with internal City spending goals.
“The City of Philadelphia is not prepared for future financial crises,” said Councilmember Gilmore Richardson. “Without the significant influx of federal dollars, we would have seen significant cuts to our budget during the COVID-19 pandemic. We must prioritize savings during our annual budget process to ensure that we are prepared to provide our residents with the services they need during our most challenging days.”
The legislation also requires the Director of Finance to conduct an annual stress test, as well as prioritize restoring any used funds within the Five Year Plan.
Read the legislation: